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B. Please provide complete correct detailed solution. Thank you. Consider the distribution of
individual incomes, yi in a population that is divided into two subgroups, indicated by the
random variable D {0,1}. Assume: So mu 0, v 0 are the mean and variance of yi in group 0, and
mu1, v1 are the mean and variance of y, in group 1. Suppose that P(D,i = 1) = p. Find mu =
E[yi]> the overall mean of yi.
Solution

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